Cyprus Latest News Mar09

Even more Rain!

Last month I reported huge rainfall in February and the predictions of lots more rain to come came true!

The heavens continued to open throughout March with the result that the reservoirs have now had over 70 million cubic metres of water inflow and total capacity is now over 80 million cubic metres.

We need around 80 million cubic metres of water per annum on the island so whilst we're not out of the drought crisis yet, we at least have enough water to last half the year and water will continue to flow as the snow melts on high ground.

On our walks over the last 2 weeks we have seen small dams in the Polis area overflowing and have had to cross several rivers which have been totally dry for the last 4 years. But we must still be careful with water and ensure we do not waste our valuable resources.

Vat Reduction to help Tourist Industry

The government is expected to announce a further reduction in VAT from 8% to 5% for the hotel industry. This will include package deals (ie half and full board deals) and not just accommodation. Whilst this will cost an additional € 20 million, it is hoped that this measure will help hotels survive when current bookings are down by at least 30%.

Restaurant owners have been pushing to get the same VAT reduction but research has shown that over 80% of customers (averaged through the year) are locals so restaurants will not be given the same concession.

We have seen prices rise in the last 2 months in restaurants which seems crazy in the current environment. Our advice to restaurants - charge a realistic price and do specials to get customers in or risk losing your business!

Gas Prices Fixed

The price of a gas canister has been fixed at € 7.80 which means good news for consumers who have been getting ripped off by profiteering retailers. As most villas and apartments use gas hobs for cooking, savings can be made as a gas canister can last for months.

Shop around and report anyone trying to sell you gas at a higher price.

Ryanair to Cyprus?

Recent reports from Ryanair have said that the cut in landing fees at Cyprus airports is "too little too late".The low cost airline has been in discussion with the Cypriot authorities for over 18 months about setting up routes to the island. Whilst the 4.5 hour flying time is beyond Ryanair's usual ceiling of 3 hours, the airline had been planning to set up a hub in Cyprus to service flights to Dubai and the Middle East.

Whilst they have decided to abandon plans in the short term, the Cyprus tourism organisation is still working hard with Ryanair to try to get them to fly to the island. Watch this space...